Cpcu 552 Chapter 3

Front 1

Examples of offenses that cgl defines as personal and advertising injury

Back 1

* false arrest, or imprisonment

* malicious prosecution

* wrongful eviction

* oral or written publication of slander material

* oral or written publication that violates person's privacy

* using another's advertising idea

* infringement on copyright

Front 2

Cgl exclusions that apply of insured knowingly is competitors advertisement

Back 2

The knowing violation of rights of another exclusion

Front 3

Cgl contractual liability exclusion

Back 3

Applies to injury for which the insured has assumed liability in a contract or an agreement except for liability that insured would have in absence of contact

Front 4

Wrong description of prices

Back 4

When insured advertisers wrong price and have buyer trying to buy for wrong price. Exclusion

Front 5

Difference between cgl coverage A and B pollution exclusion

Back 5

Primary difference is coverage B has no exceptions

Front 6

What does insurer agree to pay under CGL coverage C insuring agreement

Back 6

Medical expenses

Front 7

Categories of persons excluded from cgl medical payments

Back 7

* insured

* anyone hired to work for insured

* person normally occupies the premises

* person entitled to workers comp

* person injured while taking part in game or sports

Front 8

Why medical payments coverage not considered liability

Back 8

Coverage provided regardless of insured is legally liable

Front 9

Costs covered by supplementary payments section of cgl

Back 9

* expenses incurred by insurer such as legal fees

* up to $250 bail bond

* cost of bond to release attachment

* reasonable expenses incurred by the insured at the insurer's request

*court costs

*prejudgement interest

* interest of full amount of any judgement that accrues after entry of judgment and before insurer has paid

Front 10

Provision contained in supplementary payments section on insurer's duty to defend

Back 10

Insurer agrees to defend but only if specific conditions are met.

Front 11

Persons who receive insured status under cgl bc they have family relationship to named insured

Back 11

Spouse

Front 12

What extent are named insureds executive officers directors insured under cgl

Back 12

Directors officers are insured only with respect to their duties as officers and directors

Front 13

Are members of a limited liability company insureds

Back 13

Yes but only with respect to the conduct of insured business

Front 14

Is insureds real estate Manager an insured

Back 14

Any person or organization while acting as a real estate Manager for the insured is an insured

Front 15

Who is insured after death of the insured

Back 15

Any person or organization who had proper temporary custody of insured property but only with respect to liability arising out of maintenance or use of property until the named insureds legal representative is appointed

Front 16

Aggregate limit

Back 16

Maximum amount an insurer will pay for all covered losses during the coverage policy period

Front 17

Excess liability insurance

Back 17

Insurance coverage for losses that exceed the limits of underlying insurance coverage

Front 18

Umbrella liability policy

Back 18

Liability policy that provides excess coverage above underlying policies and may also provide coverage not available in the underlying policies subject to a self insured retention

Front 19

Personal and advertising injury limit

Back 19

Most insurer will pay under coverage B for the sum of all personal and advertising injury to one person or organization

Front 20

Aggregate limits that may apply to cgl

Back 20

General and products completed operations

Front 21

Sums paid by insurer reduce general aggregate limit

Back 21

Damages paid under coverage a, b, and c reduce aggregate limit (except payment arising out of products completed operations)

Front 22

Sums payable by insurer reduce products completed operations aggregate limit

Back 22

Reduced by any damage the insurer pays for bi or pd arising out of products completed operations

Front 23

Types of business subject to iso commercial lines manual (clm) "products completed operations incl" (p/Co incl) provision

Back 23

Types of businesses have only incidental products or completed operations liability exposure. Example is salons, financial firms, and nursing home

Front 24

Types of limits in cgl pol for a business classified as "products completed incl"

Back 24

Often does not show a pco aggregate limit

Front 25

Long tail claim

Back 25

Claim that characterized by an extended delay between the claims triggering event and the reporting of the event to the insurer

Front 26

Occurrence coverage form

Back 26

Covers injury or damage during policy period regardless of when claim is made

Front 27

Claims made coverage form

Back 27

Covers only Claims first made against the insured during the policy period

Front 28

Reasons insurers use claim made liability coverage forms

Back 28

To address issues arising from long tail Claims that are made many years after the occurrence

Front 29

Exposure for which insurers typically use claim made liability coverage form

Back 29

Use for businesses that are known to pose long tail claim problems. Usually include medical malpractice, directors and officers, and pollution

Front 30

2 basic requirements that must be met for claim to be made under iso Claims made

Back 30

1. Claim must be made against the insured during policy period

2. Covered event must not have occurred before policy retroactive date or after ends of period

Front 31

Different options that may be exercised in regards to retroactive days under iso Claims made policy

Back 31

Policy may contain no retroactive date, a retroactive date that is the same as policy inception date or retroactive date that precedes the policy inception date

Front 32

compare ISO claims made policy with no retroactive date to one that has a retroactive date

Back 32

if policy has no retroactive date, it will cover claims first made during the policy period regardless of when damage occurred. if policy has retroactive date, will cover claims first made during the policy period only if damage occurred on or after retroactive date

Front 33

extended reporting period in iso claims made liability forms

Back 33

am additional period (aka "tail") following the expiration of a claims made policy. expired policy covers claim first made against any insd during this additional period.

Front 34

3 scenarios in which ISO claims made form make their extended periods available to the named insured

Back 34

1. insurer renews or replaces current coverage with claims made coverage that has a retroactive date later than that applying to the current cov.

2. insurer renews current coverage with coverage that does not appl on claims made basis

3. coverage form is either canceled or nonrenewed

Front 35

Employee Benefits Liability endorsment

Back 35

provides coverage for damages resulting from negligent acts, errors, or omissions in administering the named insured's benefits program

Front 36

Contrast a certificate of insurance with an endorsment

Back 36

certificate of insurance is a brief description of insurace coverage prepared by insurer. does not amend, extend or alter the coverage afforded by the policy. endorsment modifies the coverage on policy

Front 37

Employment Related Practices Exclusion endorsement

Back 37

eliminates coverage for bodily injury or personal and advertising injury to a person arising out of any employment related practices

Front 38

Amendement of Limits of Insurance

Back 38

replaces the limits shown in policy dec

Front 39

Designated Construction Projects General Aggregate Limit

Back 39

provides a seperate general aggregate limit for each consturction project designated in the endorsment schedule

Front 40

designated location general aggregate limit

Back 40

provides a seperate general aggregate limit for each location designated in the endorsment schedule

Front 41

dram shop act

Back 41

statute holding establishment that serve alcoholic beverages, responsible for harm that results from serving patrons alcohol in violation of the statute

Front 42

Electonic Data Liability Endorsment (CG 04 37)

Back 42

can be added to the CGL to provide coverage for electronic data losses that result from physical injury to tangible property

Front 43

Electronic Data LIability (EDL) - (CG 00 65)

Back 43

provides broader coverage than the endosement for loss of electronic data to include losses resulting from an "electronic data incident" defined as "an addident which reslts in loss of electronica data

Front 44

Constuction Project Management Protective Liability endorsment (CG 31 15)

Back 44

broadens the insuring agreement of the OCP to include not only operations performed by contractor but also operations performed for the contractor in connection with the designation construction project.

Front 45

Pupose of Railroad protective liability coverage form

Back 45

typically requires any contractor working on the railroad owner's property to provide insurance protecting the railroad owner against liability arising out of work perfomed by the contractor. coverage is for fole benefit of railroad owner

Front 46

2 coverage agreements , cov A and B, in the Railroad Protecive Liability (RPL) Coverage form (CG 00 35)

Back 46

cov A applies to bodily inury and property damage. cov B iapplies to physical damage to property owned by or leased to the railroad

Front 47

exception to the exclusion for workers comp and similar laws in the RPL coverage form

Back 47

RPL exclusion for workers comp does not apply to any obliations of the insd under the Federal Employer's Liablity Act (FELA). FELA permits employees of inerstate railroads to sue their employers for occumpational injuries resulting from employer's negligence.

Front 48

Purpose of liquor liability coverage form

Back 48

CGL coverage form excludes liquor liability if the insured is in business of manufacturing, distributing, selling, etc. alcoholic beverages.

Front 49

Liquor Liability Coverage Form provisions for coverage for liability arising out of the use of auto

Back 49

coverage form does not exclude liability arising out of use of an auto. form covers the liquor liability of the insured in the intoxicatated person was operating auto at the time of the injury. however, the exclusion for other insurance eliminates cov for any injury